Investors' Questions

Hello, I’d like to ask about the Delta printing system printers on offer. What’s the percentage of printer sales compared to the number of printers offered to potential clients? In addition, after you had signed a contract with nScrypt for the sale of Nanopaste CL85, did you close any subsequent sales transactions for this product?

Dear Sir, In the first quarter of this year we submitted 4 offers to potential buyers of the Delta Printing System (DPS) and carried out 9 demo projects and negotiation processes as part of those offers. In the whole of 2021, those were 27 offers and 42 demo projects. It should be pointed out here that a...

Dear Sir,

In the first quarter of this year we submitted 4 offers to potential buyers of the Delta Printing System (DPS) and carried out 9 demo projects and negotiation processes as part of those offers. In the whole of 2021, those were 27 offers and 42 demo projects. It should be pointed out here that a conventional approach to the DPS sales funnel (devices offered vs sold) does not really reflect our actual sales process. This is because rather than establishing a general sales target, our sales team identified specific clients to be approached with a DPS purchase offer. Last year, we successfully sold 5 printers in this way. Due to the specific nature of the clients we have reached, it may take 18–24 months to close a sale. In addition, some of the offers that we have already submitted may be finalised next year or in two years.

At the moment, we can confirm that the commercialization process of Nanopaste CL85 in cooperation with nScrypt is on track. We are satisfied with this cooperation and if this business starts to have a significant share in the Company’s revenues, we will certainly communicate this fact.

Taking into account the belief in the good outlook for XTPL, does the Management Board intend to buy the company’s shares, obviously complying with blackout restrictions?

The Management Board of XTPL is primarily involved in the development of the Company and in the commercialization of its technologies and products. Each member of the Management Board – just like other investors in the market – has the right to make their own individual and independent investment...

The Management Board of XTPL is primarily involved in the development of the Company and in the commercialization of its technologies and products. Each member of the Management Board – just like other investors in the market – has the right to make their own individual and independent investment decisions.

Each time an obligated person from the Company (or a person connected with them) deals in the Company’s shares (obviously outside the close period), this information is disclosed by the Company in the form of a current report.

We trust that you will find this answer sufficient and clear. Should you have additional questions, please contact us again.

Hello, I’d like to ask about the possibility of investing into your business. How can I do this? What’s the price of your shares? Can I invest as a natural person, or as a legal entity (Polish or foreign)?

Our shares are listed on the main floor of the Warsaw Stock Exchange and you can buy them through an investment (brokerage) account opened with a bank (e.g. as part of your personal/ business account) or with a brokerage house of your choice. It is only with an active brokerage account that will be able to buy and...

Our shares are listed on the main floor of the Warsaw Stock Exchange and you can buy them through an investment (brokerage) account opened with a bank (e.g. as part of your personal/ business account) or with a brokerage house of your choice. It is only with an active brokerage account that will be able to buy and otherwise deal in XTPL shares.

The stock price is determined by the transactions concluded daily by all investors buying or selling the company’s shares. You can follow the quotation of our shares on many news websites, such as Interia.pl – please note that the data there are published with a 15 minute delay. Real-time price tracking is available from paid applications and services. You might inquire about such access with your bank or brokerage house that will maintain your investment account.

Our shares may be purchased by a natural person or a legal entity (firms, corporations). When the buyer is a foreign entity, they should check the conditions of the investment account for this type of client, specifically in the context of money-laundering provisions of national and international law.

XTPL shares are also listed on the Open Market of Deutsche Boerse in Frankfurt. So perhaps it might be a more convenient option for a foreign entity to invest through a capital market institution based in Germany.

Commercialization of the Epsilon printing head.

In the last series of questions from investors, a question was asked about the commercialization of the Epsilon printing head. I’m interested in this issue because for several years now we’ve been hearing about entering production lines of printed electronics giants, and about progress in evaluation. However, in response to an investor’s question about the contract with Osram, you said that work had slowed down. This in fact is already another agreement affected in relation to the smart glass sector, in addition to the MoU with HPK.

My question is: when can we expect specific information on progress of evaluation with regard to projects that involve the Epsilon printing head?

Thank you and best regards,

P.S. I’d also like to express my thanks for the good and smooth communication with the investor relations department.

Dear Sir, In the first place, thank you for your words of appreciation for our work and our commitment to ensuring the highest level of communication with you. As regards evaluation of the intended implementation of the Epsilon printing head for industrial applications, the process is reflected in all the...

Dear Sir,

In the first place, thank you for your words of appreciation for our work and our commitment to ensuring the highest level of communication with you.

As regards evaluation of the intended implementation of the Epsilon printing head for industrial applications, the process is reflected in all the projects that we have included in our pipeline presented during earnings calls and in our materials (https://ir.xtpl.com/pl/materialy/wynikowe/). Currently, we have a total of nine projects in the second stage of advancement. On top of that, we are also developing projects that are now at earlier stages than those presented by us on a regular basis. We carefully select new projects in terms of complementarity, existing technological solutions, market value, etc. We try and aim to have up to five project at this stage. Ultimately, they will ensure substitution for those initiatives which will be taken off the portfolio for various reasons.

These nine projects are moving forward at a different momentum (a stage or two may be leapfrogged in some of them), and progress is heavily dependent on our industrial partners. It is they who set the pace for the technology evaluation and adjustment of the Epsilon printing head to their production equipment. It should be borne in mind that implementation of a new technology into the production process of a manufacturer – and therefore modification of existing procedures – is a multi-stage and time-consuming process. Furthermore, please note that XTPL technological solutions are being analyzed by our counterparties in terms of applications in next generations of modern electronics, which also affects the complexity and length of implementation processes. In addition, our partners reserve high confidentiality of any evaluation activities in order to maintain their competitive edge. Please be assured that all information about achievements in the ongoing evaluation processes that we can provide will be published in relevant current reports.

In the case of the two companies you mentioned, the evaluation process has either slowed down (OSRAM Opto Semiconductors) or has been suspended (HPK) due to internal organizational changes at both firms. This was not related to negative assessment of the XTPL technology.

We keep in touch with representatives of the OSRAM’s management team. This contact is also maintained by our new distributor – merconics. It is also worth noting that one of our objectives connected with having a network of trusted distributors is the need to build and maintain relationships with already acquired industrial partners.

I trust that you will find this answer sufficient and clear. Should you have additional questions or comments, please contact us again.

When does the company expect to finalize work on the Epsilon printing head?

The work on the Epsilon printing head is related to our pipeline of projects focused on industrial implementation of the UPD technology. The final specification of this product is being refined with industrial partners interested in the potential implementation of the Epsilon module and the UPD technology into their...

The work on the Epsilon printing head is related to our pipeline of projects focused on industrial implementation of the UPD technology. The final specification of this product is being refined with industrial partners interested in the potential implementation of the Epsilon module and the UPD technology into their own production equipment or on their own production lines. That said, the pace of work on the development of the Epsilon printing module is not only dependent on XTPL, but is also linked to the progress of evaluation of our solution with industrial clients. That’s why our investor communication today focuses on demonstrating the current stages of work in individual projects geared towards industrial implementation of the UPD technology.

What is the progress of work related to inks based on gold/ copper particles? What’s the expected date of adding them to the company’s offer? What’s the size of the potential market for such inks compared to the market for silver-based inks? How strong is competition in the market of copper-based inks?

At the core of our conductive inks business are materials based on silver nanoparticles. This is a significant and constantly growing sector of the nanomaterials market. In addition to silver-based metallic nanoinks, copper and gold materials also play a role in the development of next-generation electronics. This...

At the core of our conductive inks business are materials based on silver nanoparticles. This is a significant and constantly growing sector of the nanomaterials market. In addition to silver-based metallic nanoinks, copper and gold materials also play a role in the development of next-generation electronics. This market has diversified needs, as reflected in the demand for materials with a wide range of required properties, which triggers the growing demand for gold and copper inks. Competition (including players such as Novacentrix, PV NanoCell, Dycotec Materials, and Harima Chemicals) currently offers such solutions, but the market is expecting alternatives with more attractive parameters. In order to respond to these needs and diversify our inks portfolio, we are currently engaged in R&D devoted to gold and copper materials based on the know-how achieved during the development of the silver ink line. In this way, we can develop materials with competitive properties. In both cases, these products are at an early stage of development. XTPL laboratories carry out tests of printing with gold and copper inks. And before those inks are added to the commercial offer, further tests and analyzes will be performed to ensure their superior quality in line with the company’s vision. As soon as we put them on our offer, we will certainly publicize this in our social media channels, website, newsletter, and during earnings conferences.

Some time ago, the company announced that it had been approached by OSRAM, which was supposed to look into XTPL’s solutions and check their possible application in their products. What’s the stage of the evaluation process by OSRAM? Does the firm continue to cooperate with XTPL in any way or has abandoned the cooperation/ evaluation altogether?

The technology evaluation for the OSRAM Opto Semiconductors project is under way. Talks were held about a possible strategy for scaling the XTPL technology to fit the specific application on the client’s side. Currently, due to the major organizational changes at OSRAM after its merger with AMS, those talks lost...

The technology evaluation for the OSRAM Opto Semiconductors project is under way. Talks were held about a possible strategy for scaling the XTPL technology to fit the specific application on the client’s side. Currently, due to the major organizational changes at OSRAM after its merger with AMS, those talks lost momentum, but we are in constant contact with OSRAM’s senior officers.  Merconics, XTPL’s new distributor, is also in contact with OSRAM. We cannot provide details of the cooperation due to our non-disclosure agreement.

Hello,

During the meeting with investors summarizing the third quarter, the CEO mentioned a project carried out with a company that might sign a cooperation agreement with XTPL. Did he mean Nano Dimension, which already signed such an agreement?

In addition, can you comment on the Twitter post from Adrian Kowolik, who works at East Value Research, in which he says that the printer has been well-received by one of the German institutes, but for the time being this is just a research device that might be commercialized only after a few years.

Dear Sir, During the last earnings conference the CEO of XTPL Filip Granek indeed referred to the possible signing of a cooperation agreement. Nano Dimension was among the firms we discussed this subject with. These talks ended with the cooperation agreement being signed in January 2022. In accordance with...

Dear Sir,

During the last earnings conference the CEO of XTPL Filip Granek indeed referred to the possible signing of a cooperation agreement. Nano Dimension was among the firms we discussed this subject with. These talks ended with the cooperation agreement being signed in January 2022.

In accordance with XTPL’s communication policy, we do not comment on private opinions expressed in various communication channels, including on private social media profiles.

As regards one of our business lines: the Delta Printing System, it should be emphasized that the Company has already commercialized it, and its sales have been gradually rising since the second half of 2021. So far, we have delivered four devices to a selected group of clients: research institutes, whose progress in R&D and the technologies used in the process are closely watched by global industrial market players.

All entities that we have approached with the offer to purchase the Delta Printing System are prestigious innovators in the field of searching for and discovering new technologies, and their subsequent integration into ongoing projects. It is important to note that their feedback has a strong impact in the industrial world among global producers of next generation electronics – it is such institutions that they go to for innovations and technological solutions they need. Our prototyping device is a kind of XTPL technology ambassador that builds the system’s credibility and establishes its position as a future production standard.

We would also like to point out that the revenues from the sale of those devices strengthen the Company’s working capital, supporting further growth of our business.  Last but not least, please note that the market of electronic prototyping devices is to see CAGR of 31% in the years 2021–2031. At the same time, the global annual sales of printers for R&D, rapid prototyping and small-lot production in the area of the broadly understood printed electronics sector amount to approx. 250–500 devices per annum, at a price of approx. EUR 50–500 thousand per device. Therefore, with the appropriate technology and compatible products, such as conductive inks, this is currently an important segment for the development of the Company’s operations.

I trust that you will find this answer sufficient and clear. Should you have additional questions or comments, please contact us again.

 

Hello,

I’m concerned about the continued decline of the Company value. Despite your assurances, the market does not seem to be convinced. Competition is not lagging behind either. I hope that you will step up your research and development activity very soon.

https://www.wnp.pl/energetyka/ich-szyby-wytwarzaja-prad-w-polsce-ruszyla-nowa-fabryka,518227.html (ML System launches the world’s first Quantum Glass production line).

Hello, Thank you for your message and for staying in touch with us. As we have already pointed out, while we look at the evolution of the Company's share price it seems that some investors do not fully comprehend the process of XTPL development that is taking place. Perhaps some kind of impatience or high...

Hello,

Thank you for your message and for staying in touch with us. As we have already pointed out, while we look at the evolution of the Company’s share price it seems that some investors do not fully comprehend the process of XTPL development that is taking place. Perhaps some kind of impatience or high expectations towards the Company contribute to the observed decline in the share price. It’s difficult for us to judge, and therefore to comment on, investors’ decisions about their dealing in the Company’s shares. In our opinion, the current share price in no way reflects the development stage of XTPL. We make every effort to broadly and reliably inform and educate the market on the nature of the Company’s operations, and above all its achievements in the most important areas of our activity. We have developed and use a communication strategy to support us in building relationships with our investors and providing them with reliable information. We believe that our efforts in this regard will soon help stabilize investors’ moods.

Let us reassure you that XTPL is going at a very good pace, which is particularly visible in the last 12 months also when it comes to the commercialization of our solutions. Please note that not so long ago the commercialization of our solutions and products was merely an aspiration. And now we have already sold and delivered four Delta Printing Systems, and have a constantly growing group of buyers of our XTPL nanoinks. The gradually growing sales in these two business lines will generate sufficient revenue to finance our operating activities already next year. Evaluation work is also ongoing in relation to projects connected with the implementation of the Company’s technology on industrial production lines of the major players in the electronics market of the next generation. In addition, our overall project portfolio also includes several other projects that we have not communicated to the public yet due to the early stage of the related R&D work. XTPL is a deep-tech company, and as such we are set to maintain a steady growth trajectory. Our team is actively looking for new application fields. We carefully monitor our market, the emerging needs of global electronics manufacturers, and keep track of our potential competitors’ activities. We also know that our technology is unique in terms of the printing (deposition) of conductive features in the electronics production process.

You gave an interesting example of the use of inventions and the latest technologies, but please note that there is a significant difference in the profile and industry of the entity you mentioned and XTPL. For this reason, the technology described in the article does not constitute direct competition for the implementation of the XTPL technology.

We trust that you will find this answer sufficient and clear. Should you have additional questions or comments, please contact us again using the email address dedicated to Shareholders and Investors: investors@xtpl.com or by calling us directly.

Hello,

The question relates to the commercialization of the Delta Printing System.

All the contracted printers went to research institutions. Do you expect any printers to be sold to an R&D center of a commercial company?

Dear Sir, Thank you for the message and your continued interest in our Company. We started the commercialization of the Delta Printing System devices from selected research institutions not only due to their position in the world of science, but above all their reputation among global industrial entities. It is...

Dear Sir,

Thank you for the message and your continued interest in our Company.

We started the commercialization of the Delta Printing System devices from selected research institutions not only due to their position in the world of science, but above all their reputation among global industrial entities. It is worth noting that the work of those institutions is closely monitored by industrial entities in terms of innovative technologies and solutions that may respond to their needs. The goal we set for ourselves in 2021 in this regard has been achieved.

This year, we are going to expand the customer base of the Delta Printing System to include R&D units and centers of industrial entities mentioned by you. Our sales pipeline includes a number of industrial partners at various levels of progress of negotiations. We believe that in the coming months it will be possible to provide information on the first transactions in this area. In the ongoing processes and contacts with potential industrial clients we are supported by our distributors.

We trust that you will find this answer sufficient and clear. Should you have additional questions or comments, please contact us again using the email address dedicated to Shareholders and Investors: investors@xtpl.com or by calling us directly.

Hello, I’ve been your shareholder since the IPO.

Relying on the CEO’s assurances that the company is “on the verge of commercialization”, I decided to increase my shareholding. It’s been four years now and the company is still unable to go beyond that verge, while the share price is falling dramatically week over week. Are there any real indications that the commercialization of the technology will take place in the near future and that the CEO, together with the company, will regain credibility?

Thank you and regards

Dear Sir, Thank you for your message and your trust put in our Company. We understand your concern regarding the current price of the Company's shares and will try to address your question in detail. It’s difficult for us to judge, and therefore to comment on, investors' decisions about their dealing in the...

Dear Sir,

Thank you for your message and your trust put in our Company. We understand your concern regarding the current price of the Company’s shares and will try to address your question in detail.

It’s difficult for us to judge, and therefore to comment on, investors’ decisions about their dealing in the Company’s shares. Please note that over the four years you mentioned, many changes have taken place at the Company, at the corporate and operational level alike. The last year was especially important in this respect. XTPL has transformed from an R&D firm into a company with an orderly structure and business model. We have established – from scratch – three compatible and independent business lines, a team, and laboratories; we patented innovative technological solutions and devices. We have built the awareness of our clients – both business and scientific ones – about the existence of our technology and the possibility of applying it in their production processes for new generation electronics. We announced the commercialization of the Delta Printing System line of printers and today we have already sold and delivered four printers that will allow us to generate higher revenues. This is just the beginning of the commercialization of this business line. More importantly, these devices have not been sold at random to any buyers, but have been acquired by entities that develop state-of-the-art solutions and ideas for global manufacturers of next generation electronics.

The XTPL technology, which clients can get to know and test by using the Delta Printing System, arouses a lot of interest, as the quality of the solution offered stands out significantly from what has been available on the market to date. But please remember that a change in manufacturing processes will not happen overnight – our potential clients first need to explore the technological possibilities that we offer them. For this reason, our pipeline of industrial implementations contains nine active evaluation processes. They are still ongoing and are gradually moving to the next levels of progress. We also receive regular orders for our proprietary conductive nanoinks – our buyers also include foreign government institutions and large market players. In addition, please note the Company’s actively manged sales funnel. Together with distributors, the XTPL team successfully establishes and fosters relationships with clients, which results in the XTPL technology and products being included in purchasing discussions and investment budget plans for subsequent periods.

Revenues from the commercialization of our two business lines are gradually rising and will continue to do so in the following periods/ years. We find this crucial and important for us because, as announced, we have started to generate operating cash flows to support our further development until we finalize commercialization of the third, most important business line, which is industrial implementation of our technology – the Epsilon printing module – on production lines of global players who provide solutions for manufacturers of new generation electronics.

We understand that some investors may be unhappy with the pace at which the Company is growing. Perhaps those high expectations towards XTPL have strongly influenced the recently observed decline in the share price. At the same time, the Company achieves the first tangible successes in the international commercialization of its patented solutions on global markets. Taking into account the history of firms operating in industries similar to ours, i.e. in deep-technology, new materials and new technological processes (e.g. Novaled, Nano Dimension), as well as the opinions of foreign institutional investors and industry analysts, we believe that our pace is just right. We are trying to make it clear that implementation of major changes in the technologies of production of electronic equipment will not happen overnight. Manufacturers and suppliers of components, such as displays, not only look for solutions to the existing production problems, but are also keen to see technological inventions that could be implemented in the manufacture of next-generation devices that form part of their production plans for the coming years.

Please rest assured that all significant achievements relating to the development and commercialization of the XTPL technology will be announced to the public by means of relevant current reports. In this regard, we have a communication strategy in place and we encourage you to follow our progress.

We trust that you will find this answer sufficient and clear. Should you have additional questions or comments, please contact us again using the email address dedicated to Shareholders and Investors: investors@xtpl.com or by calling us directly.

I’ve been your shareholder for a long time. For some time now, I’ve been concerned by the steady decline of the company’s valuation and the lack of progress in technology commercialization. Frankly, I invested in you encouraged by your technological potential, but so far this has not been reflected in the value of the products sold to clients. I trust you will step up your efforts to achieve tangible results.

Thank for your message and your interest in our activities. We will try to answer your questions as clearly as possible. Since the beginning of XTPL's formation, i.e. over the last six years, we have created a team and laboratories, developed and patented innovative technological solutions and devices, and built...

Thank for your message and your interest in our activities. We will try to answer your questions as clearly as possible.

Since the beginning of XTPL’s formation, i.e. over the last six years, we have created a team and laboratories, developed and patented innovative technological solutions and devices, and built the first level of awareness among potential clients – both business and academic ones – in terms of existence of our technology and the potential of applying it in their processes of production of new generation electronics. In addition, during this period, we successfully moved from the research and development phase to the commercialization of the first proprietary products. During the last few months, we have sold two Delta Printing Systems, demonstrators of our technology. Their installation at such prestigious institutes that enjoy high repute among electronics manufacturers will allow us to consistently expand the awareness of the capabilities of our technology and products. We have also created an offer of highly concentrated conductive inks with silver nanoparticles. Our group of clients in this area is increasing, with new orders also coming from existing customers. Although these two business lines are not our ultimate business targets, they help us generate operating cash flows to support the further growth of our business until the first large implementations at global manufacturers of new generation printed electronics.

As regards the third business line – implementation of technology on the production lines of electronics manufacturers – it should be noted XTPL is reaching new milestones in the process of technology evaluation with its future buyers. The technological potential of XTPL that you have mentioned has recently grown significantly, as we have taken our technology to further stages of readiness for industrial implementations at our clients who work with us on evaluation processes. Our solutions are put to and successfully pass the tests by our counterparties, who check to what extent those solutions might help them remove the technological problems they are now facing in the production of next-generation electronics.

We are aware that for a part of the market, for some investors the pace at which we are going is insufficient. Perhaps these high expectations for XTPL growth put a strong pressure on our share price, causing its visible decline in the recent period. On the other hand, we can assure you that we are happy about the progress we are making as we reach important milestones on our development path.

Taking into account the history of companies operating in industries similar to ours (e.g. Novaled, Nano Dimension), as well as the opinions of foreign institutional investors that we been receiving during cyclical investor events in which participate, we can confirm that our pace is just right. We try to make it clear that the implementation of major changes in the current technologies for the production of electronic devices will not happen overnight. Manufacturers and suppliers of components, such as displays, not only look for solutions to the existing production problems, but are also keen to see technological inventions that could be implemented in the manufacture of next-generation devices that form part of their production plans for the coming years.

Please rest assured that all significant achievements relating to the development and commercialization of the XTPL technology will be announced to the public by means of relevant current reports. We have a communication strategy in place for this, so we encourage you to keep track of our progress going forward.

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